Published on 10/3/2019 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley prices $1.7 million contingent income autocallables linked to indexes
By Sarah Lizee
Olympia, Wash., Oct. 3 – Morgan Stanley Finance LLC priced $1.7 million of contingent income autocallable securities due Sept. 23, 2021 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 7.75% per year if each index closes at or above its coupon threshold level, 70% of its initial level, on the determination date for that quarter.
Beginning March 25, 2020, the notes will be automatically called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly redemption determination date.
The payout at maturity will be par unless any index closes below its downside threshold level, 70% of its initial level, on any day during the life of the notes, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Contingent income autocallable securities
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Underlying indexes: | Russell 2000, Nasdaq-100 and Dow Jones industrial average
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Amount: | $1,703,000
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Maturity: | Sept. 23, 2021
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Coupon: | 7.75% per year payable quarterly if each index closes at or above its coupon threshold level on the determination date for that quarter
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Price: | Par
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Payout at maturity: | Par unless any index closes below its downside threshold level on any day during the life of the notes, in which case investors will lose 1% for every 1% that the least-performing index declines from its initial level
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Call: | Beginning March 25, 2020, automatically at par if each index closes at or above initial level on any quarterly redemption determination date
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Initial levels: | 1,559.765 for Russell 2000, 26,935.07 for Dow and 7,823.553 for Nasdaq-100
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Coupon thresholds: | 1,091.836 for Russell 2000, 18,854.549 for Dow and 5,476.487for Nasdaq-100, or 70% of initial levels
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Downside thresholds: | 1,091.836 for Russell 2000, 18,854.549 for Dow and 5,476.487for Nasdaq-100, or 70% of initial levels
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Pricing date: | Sept. 20
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Settlement date: | Sept. 25
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 2.75%
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Cusip: | 61769HVM4
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